Year-End Closing of the Books2012-2013

Overview of Closing: - Why?

• GAAP – Generally Accepted Accounting Principles.• End of the business cycle:

– State sessions end in June.– UO activity begins with summer school (excluding law).

• Federal (GASB) & State (OUS) requirements.– OUS has a number of mandated deadlines.

• Snapshot in time. – YTD Activity is used to monitor, project, budget, compare

and contrast with other funds, institutions, etc… – YTD balances are used for performance evaluations, system

audits, anomalies, etc…

Overview of Closing:- Why?• Annual reporting – Internal & external

– Rolled into OUS and State financial statements

– Used by DHHS and other federal agencies, State Board of Higher Education, bonding services, etc…

• Auditors – – Test for accuracy, consistency & reliability of systems, including

our policies & procedures. Help us establish best practices.– Includes: DHHS, Naval Research, NCAA, Clifton Larson Allen

(financial statement & A-133), Secretary of State, etc…

• OUS Financial Statements: http://www.ous.edu/dept/cont-div/accounting-reporting/annualfinreport

Overview of Closing

- When?Activity that takes place between:

July 1, 2012 and June 30, 2013

• Including accruals thru July 22, 2013.

• Transactions must be recorded in the fiscal year that the event takes place, not when it is processed.

• This applies to all funds in FIS regardless of the funding source.

Overview of Closing

- What?

• Close fiscal period 12.– Our goal is to have all June transactions recorded in FP-12.

• Open accrual period (fiscal period 14).• Departments have one week for adjustments.• BAO/BRP/SPS have one week for adjustments.• Close fiscal period 14 (FY-13).• OUS extracts our data & populates the HFM System.• UO reports any FY-13 transactions to OUS through the

date financial statements are released.

FY-14 Balances

• FY-14 balances will only include FY-14 transactions until fiscal period 14 is opened.

• When fiscal period 14 is opened, beginning balances in FY-14 (FP-00) are populated with FY-13 FP-12 ending balances.

• Each entry posted to FY-13 during FP-14 has a mirror entry in FY-14 (FP-00).

Balance Sheet Account Codes

A = AssetsB = LiabilitiesC = Income Statement TotalsD = Fund BalanceE = Fund AdditionsF = Fund Deletions

Income/Expense accounts are rolled up to fund balance at fiscal year-end.

Balance Sheet/Income Stmt.

FGITBAL FWIBUDG

Balance Sheet Income Stmt

C0010 0XXXX Revenue

C2010 1XXXX Labor

C1010 2XXXX-8XXXX

General Expense

C5010 9XXXX Transfers

Subsidiary Ledgers• The FIS general ledger is the official source of

financial information for the UO.• Provide a greater amount of detailed information.• FIS Examples – Operating ledger, Student A/R,

Grants, Fixed Assets, Accounts Payable, etc… • Departmental shadow systems can be used as a

subsidiary ledger. They can be useful in providing information for accounting and reporting to departmental staff. These subsidiary ledgers must be reconciled to Banner FIS.

Subsidiary Ledger

• General ledger account codes requiring supporting detail and account reconciliations

A3103 – Misc A/RA3106 – Sundry ReceivableA3702 – AR from Affiliated FoundationA4002 – Organized Storeroom InventoriesA5030 – Misc Prepaid ExpenseA5901 – Prepaid Expense Year End AccrualB0101 – Year End A/P AccrualB0190 – Received Items PayableB5802 – Misc Undistributed IncomeB5901 – Accrued Undistr Income

Dates to Remember:

• June 7 June regular payroll deadline• June 17 Contact BAO for help accruing department

non-student accounts receivable• June 28 Last day to submit student receivables• June 28 Last day to deposit cash by 3:00 p.m.• June 30 Item(s) must be received by this day to pay with FY13 funds • July 2 Last day to submit payroll form (PAA)

for FY13.

Dates to Remember:

• July 7 Last day to submit Service Department Upload JVs, “Z” documents through

AppWorx, for Period 12• July 3 Last day to direct input Inter-Institutional JVs

(Charts B-K) for Period 12• July 8 Last day to submit budget changes for Period 12• July 8 Last day to input an invoice for Period 12• July 8 Last day to input JVs for Period 12

• July 8 Period 12 Close (5:00 PM)

***(Above items must have a June transaction date)

Dates to Remember:

• July 9 Period 12 reports are available

• July 9 Last day to direct input Inter-Institutional JVs (Charts B-K) for Period 14

• July 15 Last day to input JVs for Period 14

• July 15 Last day to input budget changes for Period 14

• July 15 Last day to pay an invoice for Period 14

Dates to Remember:

• July 19 Last day to submit IIJVs to BAO for Period 14

• July 16 Detail and aging reports due for all

non-SIS accounts receivable

• July 22 Last day to submit AP Reports

• July 22 Period 14 Close (FY13)

• July 23 Period 14 reports are available

Year End AccrualsPrepaid Expense - A5901

Expenditures must be charged to the fiscal year in which goods are received

or the majority of the services are performed.

Example JV’s as follows:

To record expenditure as a prepaid expense in FY13:

Debit       Department Fund             A5901 - Prepaid Expense

Credit      Department Index            Expense Account Code - ex. 24505  Performance Fees

To record the reversal in FY14:

Debit       Department Index             Expense Account Code - ex. 24505 Performance Fees

Credit      Department Fund             A5901 - Prepaid Expense

Year End Accruals

Prepaid Revenue - B5901 

Revenue must be credited to the fiscal year that the goods or majority of the services

are provided.

Example JV’s as follows:

To record revenue as a prepaid revenue in FY13:

Debit       Department Index         Revenue Account Code - ex. 01102 Nonresident Undergrad Tuition

Credit      Department Fund            B5901 - Accrued Undistr Income

Prepaid Revenue

To record the reversal in FY14:

Debit       Department Fund            B5901 - Accrued Undistr Income

Credit      Department Index           Revenue Account Code - ex. 01102 Nonresident Undergrad Tuition

Non-SIS Accounts Receivable

• Each department must submit a detail and aging report of their non-SIS accounts

• These reports must be reconciled to banner as of period 14 (use FGITBAL)

• Includes service departments, auxiliaries, and designated operations accounts receivables from entities that are external to OUS institutions

• All internal transactions need to be posted before the close of period 14

Dating FIS Documents

• Documents entered between July 1 and July 15 for FY13, you will need to

change the transaction date to

30-JUN-2013

This includes:• Budget Changes• Invoices• JVs• Travel

Reimbursements

Encumbrances

• All open encumbrances (except zero balance items) will be rolled into FY14 Banner FIS operating ledger

• Liquidate any encumbrances that you do not want to roll into FY14 before the close of period 12 (July 8th)

Expenditure Cut-Off Guidelines

• Expenditures must be charged to the fiscal year in which goods are received or services are performed

• For goods and services received by June 30 for which vendor invoices have not been received as of July 22, fill out an AP Report and forward it to BAO Financial Services

• http://ba.uoregon.edu/sites/ba/files/forms/yearendap.pdf

Service Centers

• Service center compliance• 5 yr. Plan (CAMP)

• See BAO website for detailed instructions

http://ba.uoregon.edu/staff/service-centers

Reporting Property Not Owned by the UO

• To provide required information for leased asset year-end reporting

• To provide adequate insurance coverage

• FWIFLST – Banner query form to review inventory records– Leased Property (LE/LP)– Loaned Property (LN)

Real Property

• Performed in conjunction with BAO and CO Capital Construction Department

• Capitalization of construction in progress (CIP) expenses

• Conversion of completed projects into the Banner FIS real property records

• Componentization of specified buildings used extensively for research

BAO Help

• Accounting and Financial Management Contactshttp://ba.uoregon.edu/staff/actg-and-finl-mgmt-contacts

• Accounts Payable (6-3143) http://ba.uoregon.edu/staff/ap-invoice-payment

• Travel (6-3158)http://ba.uoregon.edu/staff/travel

Year End COB Deadlines 2012-2013

• http://ba.uoregon.edu/staff/year-end-deadlines-13

Other Links• http://ba.uoregon.edu/staff/year-end-close

• http://ba.uoregon.edu/staff/year-end-departmental-instructions-13

Closing Remarks